Read both of these articles and answer the relevant questions.

Essay Instructions:

Read both of these articles and answer the relevant questions.
Article 1: https://pilot(dot)com/blog/how-to-read-statement-of-cash-flows/
Q1. Name the 3 sections of the statement and list 2 transactions for each of the sections.
Q2. Explain how you can have a profit and still have a negative cash balance.
Article 2: https://www(dot)wallstreetmojo(dot)com/cash-flow-statement-importance/
Q1. List the 7 reasons why the cash flow statement is important.
Q2. Describe two of the 7 reasons that you would rank at the top of importance and tell why you think they are the most important.

Essay Sample Content Preview:

Cash Flow Statement
Name
Institution
Date
Article 1: How to Read a Statement of Cash Flows
Q1. Name the 3 sections of the statement and list 2 transactions for each of the sections.
1 The operating activities section which represents the cash transactions used for daily business activities. The net cash flow from this section gives the difference between the cash received and cash paid out for expenses
* Net change account receivables in a month
* Accrued marketing expenses that are non-cash transactions
2 Investing activities (capital expenditures) which deals with the investment that a business does.
* Acquisition or merger with another company
* Sale or purchase of an asset
3 Financing activities that deals with investment that other organizations make in one’s business.
* Shareholder dividend paid out
* Bank loans
Q2. Explain how you can have a profit and still have a negative cash balan...

Updated on January 26, 2024

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Read both of these articles and answer the relevant questions.

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